6-K - LCFY - Equibles

UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

WASHINGTON,DC 20549

Form6-K

REPORTOF FOREIGN PRIVATE ISSUER

PURSUANTTO RULE 13a-16 OR 15d-16 OF THE

SECURITIESEXCHANGE ACT OF 1934

Forthe month of March 2023

CommissionFile Number: 001-41333

LOCAFYLIMITED

(Registrant’sname)

246AChurchill Avenue, Subiaco Western Australia 6008, Australia

(Addressof principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LOCAFY LIMITED
Date:<br> March 17, 2023	By:	/s/ Gavin Burnett
	Name:	Gavin<br>Burnett
	Title:	Chief<br>Executive Officer

EXHIBITINDEX

Exhibit	Description of Exhibit
99.1	Press release dated March 16, 2023

Exhibit 99.1

LocafyReports Fiscal First Half 2023 Results

FirstHalf 2023 Highlighted by 58% Total Revenue and 40% MRR Increases Year-Over-Year

ProductUpgrades and Cost Structure Optimization Drive Path to Profitability

PERTH,Australia – March 16, 2023 – Locafy Limited (Nasdaq: LCFY) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in local search engine marketing, today reported financial results for the 2023 fiscal first half ended December 31, 2022.

RecentOperational Highlights

●	Announced an updated profitability timeline, highlighted by significant reductions in operational<br> expenditures and the launch of Locafy Brand Boost and Keystone products. Locafy management<br> now projects that the Company will reach profitability during the 2023 fiscal fourth quarter.
●	Named as a finalist in the 2022-2023 Cloud Awards in the Best Software as a Service (Outside<br> USA) category, specifically for its Proximity Network and Proximity Booster technologies.<br> The Cloud Awards includes more than 30 software categories that recognize excellence in the<br> cloud across industry verticals.

ManagementCommentary

“For the first half of our fiscal year, we navigated our business to best position Locafy for scale and planned profitability in the coming months,” said Locafy CEO Gavin Burnett. “With Jimmy Kelley Digital fully integrated into our platform, we upgraded Brand Boost and launched Keystone, two product sets that we expect to be pillars of our offering moving forward. Even as the sales benefits of these updates are yet to be fully realized, they helped us drive both 58% revenue growth compared to last year’s first half and a 40% increase in MRR over the year-ago period. In addition, our reseller count was up 94% over last year’s second quarter and our total page count eclipsed 93,000, both strong indicators of future recurring revenue.

“As we move into the 2023 fiscal second half, we are confident in the software solutions that we provide for our clients and in the opportunity ahead for us to capture additional market share and scale our business. Still, we believe it prudent to balance these efforts with initiatives to optimize our cost structure, and have already made several strides that we expect to help us reach and maintain profitability. These initiatives included adjusting our operations and R&D investments to manage towards a leaner organizational structure, in line with our focus on driving adoption of our existing products with an emphasis on our higher margin products. Overall, we remain committed to our growth strategy, and look forward to what’s ahead for Locafy.”

2023Fiscal First Half Financial Results

Resultscompare 2023 fiscal first half end (December 31, 2022) to 2022 fiscal first half end (December 31, 2021) unless otherwise indicated.All financial results are reported in Australian Dollars (AUD).

●	Total operating revenue increased 58% to $2.8 million from $1.8 million in the comparable year-ago<br> period. The increase in total revenue was mainly driven by an increase in subscription sales<br> and an increase in revenues derived from data partners.
○	Subscription revenue increased 69% to $2.1 million from $1.2 million in the comparable year-ago period.<br> The increase in subscription revenue was primarily attributable to the growth in the Company’s<br> reseller customer base, particularly in North America, together with revenues associated<br> with new products resulting from the Jimmy Kelley Digital acquisition.
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○	Advertising revenue increased 3% to $167,000 from $161,000 in the comparable year-ago period. The<br> increase in advertising revenue was primarily attributable to an increase in website search<br> traffic to our owned online properties.
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○	Data revenue increased 48% to $451,000 from $304,000 in the comparable year-ago period. The<br> increase was primarily attributable to sales to new data partners.
○	Services revenue remained steady at $49,000 in both the current and comparable year-ago period.
●	Cost of sales increased 26% to $888,000 from $704,000 in the comparable year-ago period. The<br> increase in cost of sales was mainly driven by the use of third-party software required to<br> deliver the Company’s bundled Proximity solutions. Locafy is currently developing alternative<br> technologies that will reduce reliance on third-party software and accordingly reduce costs.
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●	Gross margin for the second quarter of 2023 increased to 67.9% compared to 57.0% for the second<br> quarter of 2022. The increase in gross margin was mainly due to a shift towards selling higher<br> margin subscription products, together with an increase in advertising and data partner revenues.
●	Net loss was $4.0 million, or $3.93 per diluted share, compared to a net loss of $1.3 million,<br> or $1.49 per diluted share, in the comparable year-ago period.
●	As<br> of December 31, 2022, the Company had $1.0 million in cash and cash equivalents, compared<br> to $2.3 million as of September 30, 2022.

KeyPerformance Indicators (KPIs)

Unlessotherwise specified, KPI data has been recorded as of the 2023 fiscal second quarter end (December 31, 2022). All financial results arereported in Australian Dollars (AUD).

●	Monthly Recurring Revenue (MRR) for the 2023 fiscal second quarter was $464,000 a 40% increase<br> compared to $329,000 for the year-ago period, and a 2% increase compared to $456,000 for<br> the quarter ended September 30, 2022.
●	Total Active Reseller Count for the period ended December 31, 2022 was 134, a 94% increase<br> compared to 69 as of December 31, 2021, and steady compared to September 30, 2022.
●	Total End User Count for the period ended December 31, 2022 was 1,268, a 79% increase compared<br> to 708 as of December 31, 2021, and a 12% decrease compared to 1,440 as of September 30,<br> 2022. The decrease from September 30, 2022 is as a result of an internal review leading to<br> the termination of delinquent accounts.
●	Average Page Performance (Page One), an indicator of the percentage of Locafy pages that appear<br> on Page One of their respective searches, was 59% in the quarter ended December 31, 2022.
●	Average Page Performance (Positions 1-3), an indicator of the percentage of Locafy pages that<br> appear within the first three positions on Page One of their respective searches, was 41%<br> in the quarter ended December 31, 2022. While the Company does not expect page performance<br> metrics to grow every quarter, Locafy believes these measurements to be a consistent indicator<br> for technology performance at any given time.

For more information, please see Locafy’s 6-K filed on March 16, 2023.

AboutLocafy

Founded in 2009, Locafy’s (Nasdaq: LCFY, LCFYW) mission is to revolutionize the US$700 billion SEO sector. We help businesses and brands increase search engine relevance and prominence in a specific proximity using a fast, easy, and automated approach. For more information, please visit www.locafy.com.

AboutKey Performance Indicators

We define MRR as the value of all recurring subscription contracts with active entitlements as at the end of each month. MRR across aperiod is the average of each month’s MRR within that period.

Forward-LookingStatements

Thispress release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements,other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statementscontained in this press release may be identified by the use of words such as “subject to”, “believe,” “anticipate,”“plan,” “expect,” “intend,” “estimate,” “project,” “may,” “will,”“should,” “would,” “could,” “can,” the negatives thereof, variations thereon and similarexpressions, or by discussions of strategy, although not all forward-looking statements contain these words. Although the Company believesthat the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties,and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speakonly as of the date of this press release. The Company’s actual results could differ materially from those anticipated in theseforward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports thatare filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statementsattributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than asrequired under the securities laws, the Company does not assume a duty to update these forward-looking statements.

InvestorRelations Contact

Tom Colton or Chris Adusei-Poku

Gateway Investor Relations

(949) 574-3860

LCFY@gatewayir.com

-FinancialTables to Follow-

LocafyLimited

ConsolidatedStatement of Profit or Loss and Other Comprehensive Income


	6 months to 31 Dec 2022 AUD	6 months to 31 Dec 2021 AUD
Revenue	2,839,089	1,795,821
Other income	164,817	386,245
Technology expense	(1,036,224	(776,023
Employee benefits expense	(4,396,441	(2,098,756
Occupancy expense	(60,586	(23,167
Advertising expense	(158,891	(39,379
Consultancy expense	(530,086	(352,609
Depreciation and amortization expense	(494,786	(200,544
Other expenses	(65,792	(40,670
Impairment of financial assets	(259,888	-
Operating loss	(3,998,788	(1,349,082
Financial cost	(45,900	(24,530
Loss before income tax	(4,044,688	(1,373,612
Income tax expense	-	-
Loss for the year	(4,044,688	(1,373,612
Other comprehensive income
Items that will be reclassified subsequently to profit and loss
Exchange differences on translating foreign operations	7,438	(18,050
Total comprehensive loss for the year	(4,052,126	(1,391,662
Earnings per share
Basic loss per share	(3.93	(1.49
Diluted loss per share	(3.93	(1.49

All values are in US Dollars.

LocafyLimited

ConsolidatedStatement of Financial Position

	Consolidated Group
	6 months to 31 Dec 2022 AUD		Year to 30 Jun 2022 AUD
Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Current assets
Property, plant and equipment
Right of use assets
Intangible assets
Non-current assets
Total assets
Liabilities
Trade and other payables
Borrowings
Provisions
Accrued expenses
Lease liabilities
Contract and other liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Accrued expenses
Non-current liabilities
Total liabilities
Net assets / (liabilities)
Equity
Issued capital
Reserves
Accumulated losses		)		)
Total equity / (deficiency)

All values are in US Dollars.

LocafyLimited

ConsolidatedStatement of Cash Flows


Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees	)	)
R&D Tax Incentive
Financial cost	)	)
Net cash used by operating activities	)	)
Cash flows from investing activities
Purchase of intellectual property	)	)
Purchase of property, plant and equipment	)	)
Net cash used by investing activities	)	)
Cash flows from financing activities
Proceeds from issue of shares
Payment for share issue costs
Repayment of borrowings	)
Leasing liabilities	)	)
Net cash from financing activities	)
Net increase in cash and cash equivalents	)
Net foreign exchange difference	)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

All values are in US Dollars.